CEDAR RAPIDS – Manufacturers will have ample opportunities in the wind turbine supply chain because of converging trends, a trade association expert said Wednesday, Sept. 1 at Kirkwood Community College.
Tom Maves of the American Wind Energy Association said more wind turbine manufacturers that currently export into the United States are setting up shop in the United States, and existing turbine manufacturers like Acciona Wind in West Branch are trying source a higher percentage of their components domestically.
Meanwhile, Maves said, the overall market prospects for wind turbines remains strong domestically, and efforts are beginning to establish wind turbines as part of the United States’ export economy.
New wind power installations hit a record in 2009, at 10,000, helped along by incentives provided in a federal stimulus bill.
Maves spoke at a wind energy suppliers conference sponsored by Fabricators & Manufacturers International that brought about 100 attendees to the Hotel at Kirkwood Center.
The percentage of components purchased domestically for utility-grade wind turbines has increased from 25 percent in 2005 to 50 percent in 2009, Maves said. At the same time, the volume of turbines manufactured has grown four-fold.
“That’s an eight-fold increase in domestic content, and that’s just a starting point,” Maves said.
The wind power industry created about 85,000 jobs in 2009, of which 18,500 were manufacturing jobs. Maves said new production facilities already announced will add 14,000 jobs, and long-term policy shifts to favor the industry could result in tens of thousands more jobs.
The vast majority of jobs and supplier opportunities have been in producing huge utility-grade wind turbines. Maves said the size and complexity of the components they require might deter some suppliers, but opportunities exist for smaller players.
The demands of electrical components for wind turbines generally don’t rule out smaller suppliers, Maves said. He added that small suppliers might also find opportunities producing parts for smaller community and residential-sized turbines.
A manufacturer’s working group established though the association is working on a supplier handbook that it expects to have finished by the end of the year. Maves said the handbook will discuss things like industry standards, certifications, and how to talk to turbine manufacturers.
The conference attendees toured ACCIONA Windpower’s West Branch turbine assembly plant on Tuesday. Maves said ACCIONA’s goal is to increase domestic content from 40 percent to 80 percent.
Maves said Iowa’s success in attracting wind industry suppliers made it a dreaded opponent in his former position developing wind energy supply chain opportunities for the State of Ohio.
Although Iowa is second nationally in wind energy production, Maves said the percentage of Iowa’s total power demand generated by wind at 14.2 percent, is “amazing.”
American Wind Energy Association, market potential, suppliers, wind energy
